Journal of Economics and Development Studies

The Impact of Labor Migration Inflow on the Economy in Jordan (1980- 2017)
Ahmad Mashal, Emad Ahmed, Doa’a Assi

Abstract
The aim of this research was to investigate the impact of foreign labor migration on Jordan’s GDP by studying some variables which related to the labor migration such as; foreign labor size, capital stock and labor’s outflow remittances. Statistical tests have been made according to the model that have been adjusted by the researcher depending on Cobb-Douglas production function to explain the effect of each independent variable on the dependent variable (GDP) from 1980 till 2017; analysis conducted using Regression Coefficient Analysis, ADF test, correlation test, and Multicollinearity test on e-views statistical program. The analysis highlighted the impact of outflow remittances that sent by migrant labor to their families on the GDP. The result of this research showed that the foreign labors have a significant impact on Jordanian economy and they play an effective role in energizing the labor market in Jordan, on the other hand, the results showed that foreign labor’s outflow remittance have no significant impact on the economy in Jordan, and the government may consider making new regulations to encourage the foreign labors to spend their money in the Jordanian market instead of sending their earnings back to their home countries.

Full Text: PDF     DOI: 10.15640/jeds.v8n4a3